Future Supply Chain Solutions Announces Delisting Following NCLT Resolution Plan
Future Supply Chain Solutions Limited has announced the delisting of its equity shares as part of the NCLT-approved resolution plan worth Rs 171.38 crore by Reliance Retail Ventures Limited. The plan involves complete cancellation of existing shares and 100% acquisition by the resolution applicant, marking a significant restructuring of the distressed logistics company with a recovery rate of 19.15% for creditors.
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The National Company Law Tribunal (NCLT) Mumbai has given its nod to Reliance Retail Ventures Limited's resolution plan for Future Supply Chain Solutions Limited , marking a significant development in the insolvency proceedings of the logistics company. The company has now announced the delisting of its equity shares as part of the resolution plan implementation.
Key Highlights of the Resolution Plan
The resolution plan approved by NCLT includes several critical components:
| Parameter | Details |
|---|---|
| Total Resolution Amount | Rs 171.38 crore |
| Recovery Rate | 19.15% of total admitted claims |
| CoC Approval | 91.76% voting share in favor |
| Implementation Timeline | Within 90 days of NCLT approval |
Financial Details and Distribution
The financial structure of the resolution plan demonstrates the scale of the corporate restructuring:
| Particulars | Amount (in Rs crore) |
|---|---|
| Total Admitted Claims | 894.76 |
| Resolution Amount | 171.38 |
| Fair Value | 170.69 |
| Liquidation Value | 133.35 |
Distribution of Funds
| Stakeholder Category | Amount (in Rs crore) |
|---|---|
| Secured Financial Creditors | 156.10 |
| Unsecured Financial Creditors | 2.27 |
| Operational Creditors (Government) | 5.82 |
| Workmen and Employees | 1.60 |
| Other Operational Creditors | 0.25 |
| Other Debts and Dues | 4.00 |
Delisting and Shareholding Changes
As part of the resolution plan implementation, the company announced significant changes to its shareholding structure:
Pre-CIRP Shareholding Pattern
| Shareholder Category | Equity Percentage |
|---|---|
| Promoter Shareholding | 21.95% |
| Public Shareholding | 78.05% |
Post-CIRP Shareholding Pattern
Upon implementation, the existing share capital comprising 4,38,83,598 equity shares will be entirely cancelled and extinguished without any payment to existing shareholders. Simultaneously, Reliance Retail Ventures Limited will acquire 100% shareholding through fresh capital infusion.
| Shareholder Category | Equity Percentage |
|---|---|
| Promoter Shareholding (Resolution Applicant) | 100% |
| Public Shareholding | - |
Company's Financial Position
The company's financial metrics reveal the extent of distress that led to the insolvency proceedings:
| Financial Metric | March 31, 2024 | March 31, 2023 |
|---|---|---|
| Net-worth | Rs (2,935.71) crore | Rs (1,403.18) crore |
| Total Assets | Rs 5,888.16 crore | Rs 6,322.54 crore |
| Total Equity | Rs (2,935.71) crore | Rs (2,478.72) crore |
Implementation and Monitoring
A Monitoring Committee will oversee the implementation comprising the Resolution Professional, two nominees from approving financial creditors, and two nominees from Reliance Retail Ventures Limited. The resolution plan will be binding on all stakeholders, including the corporate debtor, employees, creditors, and government authorities.
Business Strategy Under New Management
Reliance Retail Ventures Limited plans to stabilize and scale the company's operations leveraging its experience in the logistics sector. The strategy focuses on improved operational performance, better financial management, and cost-effective operations under the Reliance Retail ecosystem. The marketing strength and group experience in managing distressed assets are expected to drive the turnaround.
This development marks a crucial step in resolving the insolvency of Future Supply Chain Solutions and potentially reviving its operations under new management within the Reliance group's logistics network.
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